SEBI accuses JPMorgan of manipulative stock trades in India
The Securities and Exchange Board of India has accused a Mauritius-based JPMorgan unit of executing market manipulation. This follows similar allegations against Jane Street last year, signaling increased regulatory pressure on foreign firms.
India's Securities and Exchange Board of India (SEBI) has officially accused a JPMorgan Chase unit based in Mauritius of conducting manipulative stock trades within the country. The investigation targets transactions occurring on India's securities market, which SEBI values at $5 trillion. This action represents a significant escalation in regulatory enforcement, as earlier decades saw foreign firms rarely face penalties in the region. Other major entities, including Bank of America Corp. and Capital Group, are currently under similar regulatory examination by SEBI this year. Internal sources close to the regulator indicate that officials are adopting a more proactive stance to protect retail investors from domestic and international trading activities. JPMorgan's recent allegation contrasts with the historical leniency foreign securities firms previously received in South Asia, shifting towards accountability standards common in US and European jurisdictions. The financial giant has maintained its innocence regarding the specific allegations.
